Electrification and Robotics to Drive Future Rare Earth Magnet Demand

 

 

Global rare earth magnet demand is being defined by technology mega-trends in decarbonization, energy, automation, and AI, amidst a backdrop of heightened geopolitical uncertainty. Rare earth magnets are critical materials in high performance motors, speakers, and sensor applications in automotive, industrial, energy, aerospace and defense markets. Despite rare earth supply disruptions in 2025 driving many to seek alternatives, IDTechEx finds that rare earth magnet demand continues to grow and is set to increase up to 70% globally by 2036.

 

Electric vehicles, wind turbines, and robotics all represent key magnet product markets poised for growth over the next decade. IDTechEx's latest research report, 'Rare Earth Magnets 2026-2036: Technologies, Supply, Markets, Forecasts', analyzes rare earth magnet usage trends and product adoption in emerging growth markets.

 

 

 

 

IDTechEx expects adoption of electric vehicles to grow across all mobility segments over the next decade, driving demand for rare earth magnets. Magnets find numerous applications in electric vehicles, from electric drive motors and power steering to audio speaker systems and motors for passenger seat adjustment. However, with magnet usage in e-motors varying from several kilograms in cars to tens to hundreds of kilograms in commercial and larger vehicles, most new rare earth magnet demand by weight will arise from electric motor applications.

 

In 2025, export controls on rare earth products hit the automotive industry particularly hard and have fueled appetite for reducing and replacing rare earth magnets in vehicles where possible. As such, despite growing electric vehicle adoption, IDTechEx expects magnet demand growth in e-motors to be somewhat dampened as adoption trends towards low rare earth and rare earth-free motor technologies. IDTechEx's latest 'Electric Motors for Electric Vehicles 2026-2036' report identifies wound rotor synchronous motors (WRSM) and rare earth-free permanent magnet motors as two key technologies poised to emerge and address a growing market pull for rare earth alternatives.

 

Nevertheless, despite the development of rare earth-free electric motor technologies for electric vehicles, IDTechEx expects that rare earth permanent magnet motors will retain an over 70% market share through 2036. As such, electric mobility represents a large and growing market for rare earth magnets, with IDTechEx forecasting that rare earth magnet demand in electric vehicles will double over the next decade.

 

 

 

 

High performance neodymium magnets are critical materials in wind turbine applications, used in both direct drive and geared drivetrain energy generators. The high energy product of NdFeB reduces generator weight, while its high magnetic strength (remanence) enables greater efficiency at low blade-rotation speeds in low winds.As such,rare earth magnets are used in all large offshore turbines, and a significant portion of onshore installations.

 

With global annual wind capacity installations set to exceed 200 GW by 2031, the wind energy sector will be a key growth market for rare earth magnet demand over the next decade. Average wind turbine size and capacity continue to increase; the largest offshore turbines offered in 2025 now have rotor diameters of over 310 m and capacities exceeding 26 MW. This trend is expected to continue, with onshore turbine capacities estimated to reach 20 MW and offshore 35 MW by 2030. As turbine size and capacity increases, larger direct drive permanent magnet synchronous generator systems containing more neodymium magnets by weight will be required. As such, IDTechEx forecasts that wind energy will grow to represent 20% of global rare earth magnet demand by 2036.

 

 

Magnets used in electric motors are crucial material components in robotics, acting like the 'muscles' and providing powerful propulsion and precise control. Key benefits of rare earth permanent magnets over competing ferrite magnet and electromagnet motor technology include superior energy efficiency, high torque and power density, and smoother torque curves. Key applications of rare earth magnets in robotics include in mobile, industrial, collaborative, and increasingly humanoid robots.

 

IDTechEx expects humanoid robots to be a key growth segment for rare earth magnets in robotics. Over 95% of motors used in humanoid robots contain rare earth permanent magnets. Moreover, humanoid robots contain an average of 40 motors per unit, further driving magnet volume demand.

 

A key challenge limiting wider adoption of rare earth permanent magnet motors in industrial automation applications is cost. In contrast to humanoid robots, rare earth magnet adoption in industrial, collaborative and mobile robots are significantly lower. Lower performance requirements in many industrial robotics applications means that cost has a greater influence on motor choice, disfavoring adoption of rare earth magnets over cheaper ferrite and electromagnet solutions.

 

 

IDTechEx forecasts that global rare earth magnet demand will reach 332 ktpa by 2036, as electric vehicles, wind energy, and robotics emerge as leading growth opportunities. Despite the supply disruptions of 2025 and a strong market pull for rare earth-free e-motor technology, automotive OEMs will remain reliant on rare earth permanent magnet motors for the foreseeable future. Growing global wind installations, coupled with an increase in average turbine size, is driving demand for larger energy generators containing tonnes of neodymium magnets each. Finally, with automotive and logistics markets preparing to lead early commercial deployment of humanoid robots from 2026, rare earth magnet demand is set to take-off for next generation industrial automation applications.

 

IDTechEx forecasts that global rare earth magnet production will exceed 300,000 tonnes annually by 2034, as existing Chinese production expands and new capacity in the US, Europe, and Asia-Pacific regions emerge to service growing downstream demand. IDTechEx's latest research report, 'Rare Earth Magnets 2026-2036: Technologies, Supply, Markets, Forecasts' provides comprehensive analysis of rare earth supply chains, rare earth magnet demand growth, rare earth recycling, and identifies key emerging players and suppliers in each.

 

For more information on this report, including downloadable sample pages, please visit www.IDTechEx.com/REM, or for the full portfolio of materials, EV and robotics research available from IDTechEx, see www.IDTechEx.com.